Integrated Health Services, a post-acute provider based in Owings Mills, Md., agreed to buy Century Health Services, a home-care company in Murfreesboro, Tenn. Terms of the acquisition were not disclosed. Century, which expects $32 million in revenues this year, provides home nursing and therapy services in Illinois, Indiana, Louisiana, Tennessee, Texas and Virginia through 25 branch locations. IHS posted net revenues of $1.2 billion in 1995. It operates more than 600 post-acute facilities in 40 states. Robert Elkins, M.D., chairman and chief executive officer of IHS, said the company plans to make more home-care acquisitions to round out its continuum of subacute, rehabilitation and long-term-care services.
Physician Sales and Service, a Jacksonville, Fla.-based medical supplies distributor, agreed to buy Diagnostic Imaging, also in Jacksonville, for $19.2 million in stock and assumed debt. Diagnostic Imaging distributes radiology and imaging equipment and provides technical service to acute-care and alternate-site facilities in 13 locations in five states. The privately held company reported $58 million in revenues for fiscal 1995. Physician Sales posted $236.2 million in net revenues for fiscal 1995. The company distributes medical supplies, equipment and pharmaceuticals to primary-care and other office-based physicians.
Trigon Blue Cross and Blue Shield might expand into the Southeast if it becomes a for-profit company, the Virginia insurer's chairman and chief executive officer told state regulators. During hearings before the State Corporation Commission this month in Richmond, Va., Norwood H. Davis Jr. said becoming a stock company would allow Trigon to raise the capital it needs to expand. "There's a huge opportunity for the Blues in the Southeast to get together," he said. "We have the opportunity, and it's important we get on it." If the SCC approves the conversion, Richmond-based Trigon will become a public company traded on Wall Street, and Trigon's policyholders will become stockholders of the company along with outside investors. Policyholders overwhelmingly have approved the conversion plan, but the final decision rests with the SCC.
The American Medical Peer Review Association has named Josef J. Reum its new executive vice president. Reum, 39, most recently was a senior partner with Praxis Group, a consulting firm specializing in change management and continuous quality improvement. He replaces Andrew Webber, who had led the Washington-based trade group since 1983. Webber resigned in May to take a position with the Consumer Coalition for Quality Health Care. AMPRA represents peer review organizations, which were commissioned by HHS in all states to monitor quality of care to Medicare beneficiaries. They're now being called quality improvement organizations, as part of their push to recast themselves as independent evaluators of healthcare systems and as providers of quality improvement services at state and local levels. The organization's board was scheduled to meet late last week to consider changing the group's name to the American Health Quality Association.
Because of continued enrollment declines and lack of financial improvement, Standard & Poor's Corp. lowered its rating on $73.4 million of Health Insurance Plan of Greater New York's outstanding debt to BBB from A-. The New York-based rating agency also assigned a BBB rating to the HMO's $51 million of new bonds. Since 1993, HIP's enrollment has dropped 13.9% to 820,000 as of June 30, 1996, the agency said. "Major competitors increased their respective enrollment substantially during this period," Standard & Poor's noted. Meanwhile, the HMO's 1995 operating income slid to $9.6 million from $16.9 million in 1994, it said.
John Booty announced his retirement as president of ARV Assisted Living. He will step down in October from the top job, which he has held since 1985. Booty, 58, said he will continue to serve as a consultant for the Costa Mesa, Calif.-based assisted-living provider and as vice chairman of its board of directors. Gary L. Davidson, 62, currently chairman and chief executive officer, will succeed Booty in the president's role. ARV operates 41 assisted-living facilities.